Top developer faces ‘Ponzi scheme’ trial
FORMER rich-lister and Gold Coast developer Craig Gore will stand trial for allegedly defrauding more than $800,000 from clients of his financial services company through a “Ponzi scheme” in 2013 and 2015.
Gore, who was one of the developers who established Hope Island, will face trial in the Brisbane District Court on 12 charges of fraud after a two day committal hearing in the Brisbane Magistrates Court.
When asked at the end of the hearing if he wished to say anything, Gore simply said: “Not guilty.”
The Crown’s star witness Miles Hedge, who was an owner and director of the company, Arion Financial, which was at the centre of Gore’s alleged scheme, told the court Gore “had an ego”.
Mr Hedge said he was unaware funds were being raised through debenture agreements, a type of investment contract, until April 22, 2015.
“As soon as I saw the documents I knew I was involved in a Ponzi scheme,” Mr Hedge said.
He resigned a week after seeing the documents.
A handwritten document created by Mr Hedge in 2014 listing all those who had entered into debenture agreements was handed to the court.
Mr Hedge said it just “did not register” with him the seriousness of the debenture agreements until April 2015.
Those debenture agreements put Gore in the firing line.
Gore promised five different self-managed superannuation funds 8.5 per cent interest on money invested with Arion Financial for 90 days.
It is alleged Gore had no intention of keeping that promise as any money paid to the company was immediately used to pay bills and “personal expenses”.
The court heard bank records showed Arion Financial had just a few dollars in their bank account when the 90 days expired.
The five funds which had invested cash were not left out of pocket with another company Gore was involved with returning their money when asked.
The charges relate to money being invested in Arion Financial between mid-2013 and 2015.
Defence barrister Mark McCarthy said the debenture agreements, or investment contracts, did not specify how Arion Financial used the money.
He said despite the low funds, Gore knew the money could be returned using money from My Adviser, a company Gore was also involved with.
The 51-year-old will not be allowed to return to his family home in Sweden due to bail conditions which mean he cannot hold a passport or approach an international departure point.
Arion Financial’s former financial controller Mario May told the court he regularly met with Gore about the cash flow at the business.
He said Gore would tell him which bills could be paid using the funds they had available.
Gore featured in The Sunday Mail Queensland’s Top 100 Rich List a decade ago with a $200 million-plus fortune. But he’s had a chequered past since filing for bankruptcy in 2012.
Gore moved to Sweden with his family in 2015 and returned to Australia in February last year for a holiday.
He was arrested at Brisbane Airport in April 2017 trying to leave the country.
Since his arrest Gore had lived with friends in Cardwell in Far North Queensland before moving to a beachside unit in a high rise at Surfers Paradise. His wife and children remain in Sweden.
Defence solicitor Terry Fisher, of Fisher Dore Lawyers, said; “Mr Gore is looking forward to fighting the charges in the District Court.”
The trial date is yet to be determined.